Societe Generale to price seven-year callable CMS spread notes

By Marisa Wong

Morgantown, W.Va., Aug. 22 – Societe Generale plans to price callable CMS spread notes due Sept. 2, 2025 linked to the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a term sheet.

The interest rate will be 7% for the first year. After that, the interest rate will be 10 to 11 times the sum of the spread of the 30-year CMS rate over the two-year CMS rate plus 25 basis points, subject to a minimum of zero and a maximum of 8% per year. Interest will be payable quarterly.

The payout at maturity will be par plus the final coupon, if any.

Beginning a year after issuance, the notes will be callable at par on any coupon payment date.

SG Americas Securities, LLC is the agent.

The notes will price on Aug. 28.

The Cusip number is 83369FB89.

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